Gift Deed: Required Documents And Registration Process
What Is A Gift Deed?
- A gift deed is a document in which one person voluntarily gifts their movable and immovable property to another person. This deed allows the property owner to gift the property to anyone and avoids any problems arising from inheritance or inheritance claims.
- This registered deed is proof in itself. This transfer of property is an instant settlement and there is no need to go to court to execute these and save time.
Components Of A Gift Deed
Here are Important Notes to be Mentioned in the Deed:
None Of These Have Money Or Power:
Make sure that this bond is free of any money transfer and mention that it is registered only out of affection and love and not out of coercion.
You Are The Owner Of The Property You Are Gifting:
When you gift a property you must be the owner of the property otherwise you cannot gift the property.
All information related to the property such as the complete structure of a property, type of property, area, location, address, etc. should be mentioned in this deed.
Relationship Between Donor And Donee:
If the donor of a property and the donee are blood relatives, the Manila Government may grant a stamp duty concession. Otherwise, it is important to establish the relationship between the two in the property role.
Rights Of Donor's Property:
The property rights of the donor should be mentioned in the deed. The deed clearly explains that he can sell, rent, or lease the property at his discretion.
If he wants the donor to adhere to the revocability clause in the deed, he can clearly mention it. For this, both must agree to this deed clause.
There must be two witnesses to execute a deed. The name and address of the witnesses must be mentioned in the deed. Only then will the deed be valid.
How To Draft A Gift Deed?
Here are some details that should be included in the deed:
- This deed must specify the place and date to be executed.
- Both donor and donee should mention all the details like name, address, date of birth, relationship, and signature in the deed.
- Full details of the property to be deeded should be mentioned.
- This deed must have two witnesses and their signatures.
- Depending on the value fixed by the State Government on the bond, the bond should be registered in the Registrar’s or Deputy Registrar’s office by printing on the stamp paper and paying the prescribed amount.
This agreement is made between the seller and the buyer before making the agreement. It includes all the terms, possession date, payment schedule, property specifications, etc.
- Original gift deed
- Identity proofs like an Aadhaar Card, PAN Card, Driving License, etc
- Sale deed and title deed to prove ownership of donor
- Address and identity proofs of witnesses
- Passport size photograph
Registration Of Gift Deed
- According to the Transfer of Property Act 1882, a deed of gift is valid only if it is registered in the office of the Registrar or the office of the Sub-Registrar. The deed must be signed by the donor and the donee and executed and signed by two witnesses.
- The value of stamp paper and stamp duty varies from state to state. In respect of movable property, the jurisdiction of the office of the Registrar or Sub-Registrar is the domicile of the donor.
Stamp duty On Gift Deed Registration
- Registration of gift deed involves stamp duty and registration fee etc. Stamp duty varies from state to state. The stamp duty rate for property transferred as a gift is the same as the sale of a transfer deed.
- Stamp duty on property transferred by sale and gift deed in Delhi is the same—4 percent for men and 6 percent for women.
- In West Bengal, stamp duty is 5 percent in panchayat areas and 6 percent in municipal areas of the net worth of the property.
- In Karnataka, family members have to pay anywhere from 1000 to 5000. Non-family members are charged 5.6 percent of their property.
- In Madhya Pradesh, 2.5 percent is charged for family members and 5 percent for non-family members.
Process Of Transferring A Property Via Gift Deed
This deed is a legal document that contains all the information related to the transfer of property and is prepared with the help of a lawyer. It should contain important details of the transferee and the transfer should be voluntary and not forced.
Acceptance Of Action
When the donor is alive, the process of acceptance of gift transfer is completed. Acceptance can be verified by taking possession of the property.
Transfer of title under this deed takes place only for the registered property. At least two witnesses are required to attest to the deed.
Difference Between Gift Deed And Will
The bond is valid during the donor's lifetime and for life.
The property becomes active only after the death of the owner.
A role cannot be revoked and can only be revoked in a specific context.
It can be redeemed multiple times.
The deed must be registered under Section 123 of the Transfer of Property Act and Section 17 of the Registration Act.
Registration of the deed is not mandatory.
These include stamp duty and registration fees.
Stamp duty and registration fees are levied.
It is subject to income limits.